Overseas yuan clearing banks and participating banks may also conduct bond repurchase transactions in the Inter-Bank Bond Market, per the document.

'Overseas institutional investors' refers to financial institutions that comply with PBOC requirements and are legally incorporated and established outside China, including commercial banks, insurance companies, securities companies, fund management companies and other asset management institutions, as well as investment products legally issued by such financial institutions. They also include other mid- and long-term institutional investors China recognizes, such as pension, charity and endowment funds, PBOC said.

All overseas institutional investors may now engage in cash bond transactions in the Inter-bank Bond Market. Overseas yuan clearing and participating banks may also conduct bond repurchase transactions in the Inter-Bank Bond Market.

Investment scales are at the discretion of qualified overseas institutional investors, with no investment quota restriction, PBOC said.

The principal remitted in by overseas institutional investors to invest in the Inter-Bank Bond Market may be in yuan or foreign currencies. Funds may be remitted out in yuan or converted to foreign currencies domestically before outward remittance in a currency mix similar to the funds remitted in.